Correlation Between HTG Molecular and Burning Rock
Can any of the company-specific risk be diversified away by investing in both HTG Molecular and Burning Rock at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining HTG Molecular and Burning Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HTG Molecular Diagnostics and Burning Rock Biotech, you can compare the effects of market volatilities on HTG Molecular and Burning Rock and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HTG Molecular with a short position of Burning Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of HTG Molecular and Burning Rock.
Diversification Opportunities for HTG Molecular and Burning Rock
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HTG and Burning is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding HTG Molecular Diagnostics and Burning Rock Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burning Rock Biotech and HTG Molecular is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HTG Molecular Diagnostics are associated (or correlated) with Burning Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burning Rock Biotech has no effect on the direction of HTG Molecular i.e., HTG Molecular and Burning Rock go up and down completely randomly.
Pair Corralation between HTG Molecular and Burning Rock
If you would invest 715.00 in Burning Rock Biotech on August 29, 2024 and sell it today you would lose (184.00) from holding Burning Rock Biotech or give up 25.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
HTG Molecular Diagnostics vs. Burning Rock Biotech
Performance |
| Timeline |
| HTG Molecular Diagnostics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Burning Rock Biotech |
HTG Molecular and Burning Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HTG Molecular and Burning Rock
The main advantage of trading using opposite HTG Molecular and Burning Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HTG Molecular position performs unexpectedly, Burning Rock can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Burning Rock will offset losses from the drop in Burning Rock's long position.| HTG Molecular vs. bioAffinity Technologies, | HTG Molecular vs. Psychemedics | HTG Molecular vs. Precipio | HTG Molecular vs. Intelligent Bio Solutions |
| Burning Rock vs. Fonar | Burning Rock vs. Sera Prognostics | Burning Rock vs. Neuronetics | Burning Rock vs. DarioHealth Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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